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Book i^L^l. 



THE 
NITRATE INDUSTRY 



By Senor Enrique Cuevas 

Counselor of the Chilean Embassy to the U. S. A. 




Published by 

WILLIAM S. MYERS, D. Sc, F. C. S., Director 

Chilean Nitrate Propaganda 

Late of New Jersey State Agricultural College 
25 MADISON AVENUE, NEW YORK 






D. of D. 
JUL 18 1916 



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INTRODUCTORY NOTE BY THE PUBLISHER 

Since the outbreak of the European war, resulting in the 
destruction of much shipping, the need of promoting an effective 
Entente Cordiale between the countries of South America and 
those of North America has been strongly emphasized. 

It has been especially gratifying, therefore, to witness a sec- 
ond Pan-American Congress called in Washington for the pro- 
motion of such an Entente with Latin- America. 

The temporary closing of the Panama Canal, after merchants 
had come to know its great convenience so well, further disclosed 
the vital need of promoting transportation between the two 
Continents. It is not by any means necessary to confine it to 
water transportation. Water freights for Nitrate of Soda have 
been as high as thirty dollars ($30.00) a ton of late, and this 
would be less by all rail, were such facilities in existence. 

The completion of the Longitudinal Railway of the American 
Continent is greatly to be desired. With such a railway, North 
America need not be cut off from the indispensable Chilean 
Nitrate of Soda as a munition of war in time of need. On the 
other hand, the transportation of all necessities, at all times, to 
the South American Countries would render all rail route 
between Kansas City and Buenos Aires of inestimable value. 

As is well-known by all scientific men who have approached 
the subject with an open mind, the Nitrate supplies of Chile are 
for all practical purposes inexhaustible. 

The Central Empires of Europe imported from Chile in the 
five years ended December 31, 1914, an unheard of tonnage of 
Nitrate of Soda amounting to about five million (5,000,000) tons. 
The area of the Central Empires is hardly greater than the 
combined areas of California and Texas. These Empires 
imported more than all the rest of Europe for the period named. 

It is not improbable that a very great amount of this five 
million (5,000,000) tons is still held in reserve in Germany, and 
it is privately reported that no Chilean Nitrate is to be permitted 
to be used in agriculture for some time to come. 

It is believed that the views set forth by some experts at the 
Pan-American Congress, suggesting our entire independence of 
this most important South American product, should not be 
taken too seriously, and it may prove so later when subjected to 
the cold, dry light of hard-headed business experience. These 
views, therefore, while animated and most interesting, did not 
touch upon the eminently desirable proposal of Senor Cuevas, 
which is entirely within the sphere of practical things. 



It is strongly urged that his able Address be read by North 
Americans from the standpoint of friendly presentation of the 
broad views of a statesman. 

It is, in effect, an invitation to trade with them and not a 
proposal for us merely to buy or for South Americans merely to 
sell, but rather that ladings may be always full in both 
directions. 

Our merchants and manufacturers have a very keen desire to 
sell their goods to South America, which is a new market; and 
Pan-Americanism points to trade development that will enable 
South Americans to sell goods to North Americans, as well as to 
buy them from us. 

It still remains for diplomatic expressions of good will to be 
translated into terms of practical trade reciprocity, which is to 
be of mutual advantage to the people of both Continents. 

Should the States of North America enter the field of manu- 
facturing Air Nitrate, Chile might add a plant for direct com- 
petition by water power since that is quite adequate in that 
country for large production. 

It is a great pleasure indeed to be able to reproduce the views 
expressed so vividly by Counselor Cuevas of the Chilean 
Embassy at Washington, in his description of the Chilean 
Nitrate Industry in the succeeding pages. 

His high position with his government and his long experi- 
ence in that service as Governor of one of the large provinces of 
Chile, guarantee a sincerity of expression which, it is believed, 
will be fully appreciated in the perusal of his Address. 

New York, April, 1916. 



CONTENTS 

General Remarks. 

History of Nitrate. 

Origin of the Deposits. 

Nitrate as it is found. 

Cateos. 

Extent of Nitrate Deposits in Chile. 

Technique of the Industry. 

Cost of Production. 

Uses of Nitrate. 

Nitrate of Soda as a fertilizer. 

Economic Importance of Nitrate. 

Competition with Atmospheric Nitrate. 

Labor Problem in the Industry. 

Effect of the European War Upon the Nitrate Industry. 

Nitrate Combination. 

Nitrate Railways. 

Nitrate of Soda in the United States. 

Part Played by the Industry in the Economic Life of the Country. 

Conclusions. 

Appendix. 



The Nitrate Industry 

By 
Enrique Cuevas. 



General Remarks. 

In the great desert of Northern Chile lies an area 
of over 450 miles in length, barren and desolate, bereft 
of trees, shrnbs or even weeds. Yet, it is the one spot 
upon which the world is dependent for its supply of the 
most effective means of increasing the productiveness 
of its soil, for along this arid region stretch the vast 
deposits of the precious mineral, from whose exports 
alone the Government derives an annual revenue of over 
$35,000,000 U. S. Currency. 

For the benefit of those who are not acquainted with 
the origin and preparation of nitrate, it may not be 
amiss to s$y a few words on this point. Owing to the 
fact that the nitrate industry is carried on in no other 
country than Chile, many of the technical words used in 
connection therewith have no exact equivalent in other 
languages, and it thus becomes necessary to explain the 
meaning of such terms as will be employed in the course 
of this discussion. 

The area in reference is commonly known as the 
Pampa Salitrera — the nitrate plain — where lie the de- 
posits of caliche, the raw material from which saltpeter 
is extracted. This salt contains nitrate of sodium in the 
proportion of 95 per cent, the commercial standard. 

Cliuca, cost r a and tapa are the layers found above 
the caliche, while those lying below are called conjelo 
and coba. 

The survey for locating caliche beds and determining 
the quantity and standard of the material is known as 
cateo. 

Oficinas salitreras is the name applied to the various 
establishments which operate the deposits and prepare 



The Nitrate the finished product for the market. They are scattered 

throughout the Pampa like small cosmopolitan towns, in- 

8 habited by Chileans and people of different nationalities. 
Each oficina stands in the midst of the field from which its 
caliche is obtained. It is a group of buildings equipped 
with modern machinery, chemical laboratories, crushers, 
boiling tanks, settling vans, offices, and living quarters. 
An important part of this group, which should be men- 
tioned in passing, though one, subordinate to the main 
object of securing as much nitrate as possible, is designed 
for the extraction and preparation of iodine from the 
mother lye. 

The nitrate zone is situated at an altitude ranging 
between 2,000 and 5,000 feet above sea level, within 




About *$ M»«.«s - - -» 



GENERAL EAST AND WEST SECTION OF THE NITRATE OlSTRICT OF OHILI. 
. VERTICAL SCALE EXAGGERATED. 

19° 11' and 27° South latitude. In the north it is sepa- 
rated from the coast by a distance of about 16 miles, 
and by nearly 90 miles in the south. It is connected 
with the shore by a number of railway lines. The 
climate prevailing is a peculiarly dry one, there being 
hardly any precipitation. However, it is to this lack of 
rainfall that the nitrate beds owe their very existence, as 
the water filtering into them would naturally dissolve 
their components. 

History of Nitrate. 

The history of nitrate may be divided into three dis- 
tinct phases, to wit: (1) History of the discovery of 
the substance; (2) history of the methods of prepara- 



tion, and (3) history of the manner of acquiring the ^ e us f" rate 
lands. 



History of the Discovery of Nitrate. 

According to tradition, the first discoveries of caliche 
were made in Tarapaca by the Indians, and it was first 
applied as a fertilizer by a priest at the head of a parish 
in Camina. 

It is said that a party of Indians had straggled into 
what is known to-day as the Pampa Salitrera, and, as 
a protection against the intense cold, , they built them- 
selves a bon-fire. To their amazement, they noticed that 
the fire soon began to run along the ground in every 
direction, causing what to them were strange and un- 
accountable noises. Terrified at so unusual a sight they 
fled from the spot, which they firmly believed to be the 
abode of the evil spirit. The flames, spreading out 
sometimes to quite a distance from the original fire, were 
to their minds the evil spirit itself. So they went to 
the priest and told him of their terror and its cause. He 
quickly understood that the phenomenon was simply due 
to the existence of some special substance in the soil, and 
asked the Indians to take him to the place. They read- 
ily agreed, believing the priest possessed with the power 
of banishing the evil spirit, and an expedition was or- 
ganized. He gathered many specimens, which he took 
to his house, and, with the meagre chemical outfit at his 
disposal, made an analysis of these samples, which showed 
the presence of nitrate of soda. 

The samples which had not been used in the analysis, 
he piled up in his garden, and a few days later he no- 
ticed an extraordinary development in the plants which 
happened to be near the piles. Convinced that he had 
discovered a powerful tonic for plants, he undertook 
to experiment with it on his crops, finding after the first 
year that the products w^ere much larger and far superior 
to those he had obtained in his previous agricultural 
experience. 

Then the priest announced to his parishioners that 
the soil was not the abode of the evil spirit, but a gift 
of Providence for increasing the productiveness of the 
earth. So much for tradition. 



9 



The iSr e 0fficial documents of the time of Philip the Fifth show 

s ry that saltpeter was then already known. In the 18th Cen- 

10 tury, the mines of Huantajaya and others were exten- 
sively exploited, and the miners used the caliche in the 
preparation of the gunpowder which they used in work- 
ing their mines. 

History of the Manufacture of Nitrate. 

Tarapaca was the cradle of the nitrate industry. The 
Indians used to prepare the substance, for gunpowder 
purposes, in large copper caldrons. The working 
process was very simple. The caliche was placed in 
these caldrons when the water had reached the boiling 
point. The solution was finally transferred to large 
wooden vats where the nitrate finally crystallized. This 
method was in use until the beginning of the 19th Cen- 
tury, when a more scientific process of dissolution was 
adopted. 

The first oficinas were established in 1812. Wood was 
still used as fuel and the working implements differed 
very little from those used by the Indians. The process 
of manufacture, however, varied somewhat. The In- 
dians used to boil the water first; the caliche was then 
put in and tjpte solution stirred for some time with large 
iron bars.VThen the water was taken out of the caldrons 
with huge iron spoons and put into the wooden vats for 
"its decant ation; the solution was afterwards transferred 
to other vats in which it finally crystallized. There was 
no specially adapted machinery for extracting the caliche 
and carrying it to the working plant. 

It may be readily seen that under this method only 
a very small part of the caliche extracted was finally 
prepared, the greater portion being lost in the process. 
Owing to imperfect ways and means, a large quantity 
was lost in the extraction, as the water did not dissolve a 
large percentage of the nitrate in the caliche, and a great 
portion of the solution leaked through the wooden vats. 

About 1855, a new era was inaugurated for the nitrate 
industry with the introduction of steam as a means of 
heating the water for the solution. At first, the steam 
was applied directly, being forced into the water. 
Twenty years later the use of steam in coils was adopted, 
the same principles governing the Shanks system for 



the production ot soda beins: applied to the uianufac- J h a e Nitrate 

n ■ r™ • . i? t • ^i Industry 

ture of nitrate. This system is very successful m the 

working of the caliches of Tarapaca, which are soft and n 

porous, and at present the same methods, more or less 
modified, are employed in the different oficinas. 

History of the Acquisition of Lands. 

Until the year 1S6S, the nitrate fields, like other min- 
eral lands, were unclaimed. Almost anybody could for 
the asking secure from the government a grant of two 
estacas, an estaca comprising about 36,000 square yards. 

The method of surveying the boundaries of lots was 
a very imperfect one. A justice of the peace attended • 
to the conveyance of the property. The instruments 
used were a compass and a rope about 45 yards long. 
The surface was marked off by lines traced on the 
ground by means of a hammer dragged at the end of 
the rope. Small piles of stones were then placed at the 
intersections of such lines, and at right angles therewith 
small stones were laid just far enough to show the direc- 
tion of the dividing lines. This was the official basis 
for deeding the property, and. as one can easily imagine, 
the position of these markings could be changed without 
much trouble whenever the owner found out that the 
standard of the caliche in his grant was not high enough. 

The regulations in force at that time prescribed no 
other limitations than that of restricting nitrate grants 
to two estacas per person: consequently it was an easy 
matter for a large family, for instance, to form an ex- 
tensive holding by joining the lots of its different 
members. 

In January. 1873, the Peruvian Government assumed 
the monopoly of the nitrate industry, and fixed the ex- 
port duty on the article at 4 cents per quintal (1 Span- 
ish quintal being equal to 101.44 pounds), increasing it 
later to 15 cents. In 1875, the Penman Congress passed 
a law of eminent domain authorizing the Government to 
spend the amount of 7,000,000 pounds sterling in the 
condemnation of oficinas salitreras and in the construc- 
tion of nitrate railways. In 1S76 it was enacted that in 
July of the following year the oficinas should be turned 
over to the government and that their operation should 
cease. 



The Nitrate Under the law, commissions of engineers were ap- 

! pointed to ascertain the value of grants and oficinas to 

12 be purchased by the Government. Nevertheless, the 
method of procedure followed by these commissions was 
inadequate. In the main, they trusted altogether to 
the data furnished them by the proprietors, and, with- 
out verifying the actual limits of the property, gave out 
certificates to the owners. From this arose the diffi- 
culty encountered by the Chilean Government after the 
Pacific War, — which left Chile in possession of the 
nitrate zone, — in turning over the property to the hold- 
ers of the certificates. At present, most of the titles 
have been cleared up, and lands owned by the Govern- 
ment are sold from time to time at public auction and 
accurately surveyed. 



Origin of the Deposits. 

This is a mooted question on which no two geologists 
agree. There are, however, some theories which are 
generally accepted as more or less correct. One is that 
in prehistoric times, the entire nitrate zone was a part 
of the Pacific Ocean, and that through volcanic disturb- 
ances that portion of the sea was cut off and the water 
evaporated by a very slow process. Fish skeletons 
found in the caliche furnish good proof of this asser- 
tion, as does the fact that the Pacific coast is rising 
gradually. This theory is, however, contradicted by the 
fact that no bromine exists there, — a substance naturally 
looked for in deposits thus formed. 

Another theory attributes the origin of the caliche to 
an electrical process. The passage of an electric spark 
through the moist air produces a combination of nitro- 
gen and oxygen resulting in nitric acid. Electrical 
storms, — a frequent occurrence in the Andes, — may 
have acted in this way and formed great quantities of 
nitric acid. The water charged with the acid, coming 
into contact with the lime in the rocks, may have pro- 
duced nitrate of lime, which together with sulphate of 
soda, may in turn have formed nitrate of soda, freeing 
the sulphate of lime. 

A later theory maintains that the deposits are an 



accumulation of land drainage brought down through The Nitrate 



Industry 



ages from the highlands along the coast. 

Others explain the formation as the work of microbes, 13 

or as the result of the action of volcanoes discharging 
through their craters ammonia-charged steam there 
condensed. 

Leaving the solution of the problem to geologists, we 
may now proceed with a consideration of the substance 
as found on the spot. 

Nitrate as it is Found. 

Nitrate is found mixed with other substances in ir- 
regular sections of the soil, forming a stratum fre- 
quently interrupted by sterile sections. It is generally 
considered that no more caliche is found below the coba, 
but in some cases there is a second nitrate-bearing layer, 
called banco. 

The chuca, the layer with which the nitrate field is 
always covered, is usually not over ten inches thick, and 
is formed by the decomposition of porphyry, its color 
varying from gray to brown. In this layer many loose 
crusts and rough pieces of a gray-white color are found 
embedded. 

The costra, the layer beneath the chuca, is a sort of 
rocky conglomeration of clay, gravel, porphyry and 
feldspar, cemented together with sulphate of calcium, 
sulphate of potash and soda, nitrate of soda, etc. This 
is a very hard mass, and is difficult to remove without 
the aid of explosives. 

The tapa is the layer found immediately above the 
caliche and is composed of sand and clay, common salt 
and sulphate of calcium. The costra and tapa have a 
depth of from one to three feet. 

The caliche stratum, with a depth varying from a few 
inches to six or more feet, is a mixture of which there 
are technically three different grades: (1) the best, 
containing from 40 to 70 per cent or more of nitrate; 

(2) the medium, containing from 30 to 40 per cent; and 

(3) the lower, containing from 18 to 30 per cent. Caliche 
averaging below 17 per cent is not considered worth 
working at present. 

The appearance and composition of caliche differ in 



The Nitrate the various zones. It is often white as snow; in other 
n us ry instances it is yellow, gray, or sometimes violet. It has 
14 a salty taste, and is very soluble in water. 

The standard of nitrate of sodium in the fields nnder 
exploitation varies from 18 to 70 per cent, the aver- 
age being from 20 to 50 per cent. The caliches of higher 
standard are found in Tarapaca and Tocopilla. 

The substances of which the caliche is composed, and 
the proportions in which they are found, vary a great 
deal. One of the numerous analyses we have examined 
gives the following composition: 

Per cent. 

Nitrate of sodium ; " 34. 2 

Common salt . . . . 32.0 

Insoluble matters (clay, gravel, etc.) 14.5 

Sodium sulphate 8.4 

Calcium sulphate 6.3 

Nitrate of potassium 1.6 

Magnesium sulphate 2.0 

Water 1.0 



100.0 



The conjelo, the layer immediately below the caliche, 
is composed of sand, different salts, and clay, and very 
often a great quantity of small selenite crystals. . 

The cob a, the stratum under the conjelo, moist as a 
general rule, is formed of calcium sulphate, clay, etc. 

Cateos. 

This operation consists of ascertaining the existence 
of the caliche, the depth of the strata lying over it, the 
standard of the material, etc. This is done by blasting 
at certain depths and regular distances. It is not diffi- 
cult, when the ground is thus broken, to determine the = 
width of the vein, to compute the degree of difficulty 
in its extraction, by taking its depth into account, and 
to ascertain the average standard by making an analysis 
of the caliche in the different places. So, by means of 
this process, it is practicable to estimate with more or 
less accuracy, the quantity of nitrate in the soil under 



15 



cateo. The quantity thus determined is called the theo- j^ e us f itrate 
retical quantity. The amount of nitrate that can actu- . nc 
ally be exploited is obtained by subtracting from this 
figure the caliche of a low standard. 

The commercial price of a salitrera depends, of course, 
upon the standard of the caliche, the depth of the veins, 
the amount of the water available for the working 




process, and the location of the fields, i. e., distance from 
the shipping port and transportation facilities thereto. 



Extent of Nitrate Deposits in Chile. 

According to the latest official report presented to 
the Chilean Government by Mr. Francisco J. Castillo, 
the Inspector-General of the nitrate deposits, the zone 



The Nitrate f nitrate-bearing grounds comprises nearly 200,000 

11 us ry square kilometers,* of which only 5,811 square kilomet- 

16 ers, that is to say, less than three per cent of the total 

area, have thus far been surveyed and their contents 

ascertained by excavations and test holes. 

These 5,811 square kilometers belong to the existing 
companies, private firms, and part of them are still in 
the hands of the Chilean Government. 







UNEXPLORED NlTCAtt GROUND IN CfflLE v 




74,978 SQUARE MILES ; • ; : : 


\ 




EXPLORED 




NITRATE 




GROUND 




2,244 


:':;.' ..: : ' : ;'. : .'• . '" ;;: : '; :: :;;J : : '■ ^'. ■ : : ■ '' ■■ ' ■■ ' 


SO. MILES 



The estimated contents of these 5,811 square kilo- 
meters were 290,300,000 tons of nitrate, of which up to 
the present 50,000,000 tons have been extracted and ex- 
ported, leaving in the surveyed portion of the area, 
240,300,000 tons of nitrate, equal at the present rate of 
production, to a supply* for an additional 100 years. 



* 1 square kilometer — 0.386 square mile. 




Caliche ready for transport, to oficina. 



Ui 




Top <»f Caliche hopper; Carts tipping Caliche. 




Packing Nitrate into bags. 




Loading lighters. 



As the unexplored part is some 34 times larger than The Nitrate 
the grounds explored, it is safe to estimate that it con- n us *? 
tains altogether at least twice the quantity of nitrate of *7 
soda, and consequently the nitrate zone in Chile can 
certainly provide nitrate of soda for another 300 years 
at the present rate of production. 




The quantity of nitrate of soda in the surveyed 
grounds is distributed as follows: 

Tons 
remaining'. 

Tarapaca Province 33,000,000 

Tocopilla District 27,000,000 

Antofagasta (Central) 31,000,000 

Antofagasta ( Aguas Blaneas District) 48,000,000 

Tal tal 93,000,000 

Chanaral and Copiapo 8,000,000 

Total 240,000,000 



The Nitrate The Inspector-General of nitrate grounds, in his re- 

!__, port to the Chilean Government, has arrived at these 

18 figures in the following manner: In these surveyed 
grounds no raw material containing less than 17 per 
cent of nitrate of soda has been taken into considera- 
tion, nor grounds where the thickness of the nitrate- 
bearing layer was less than 1 foot, except in the cases 
of raw material with at least 25 per cent of nitrate of 
soda, in which cases thickness of 8 inches or over has 
been included. The superficial area of each portion of 
ground has been divided by the total number of test 
holes made, in order to arrive at the area applicable to 
each test hole, and this consequently determines the total 
nitrate-bearing area. From the theoretical quantity of 
pure nitrate of soda resulting from the above opera- 
tions, a reduction" of 40 per cent has been made in order 
to allow for losses in extraction, manufacture, errors in 
calculation, etc. 

There remain, besides, vast quantities of lower grade 
ore which have been excluded from these estimates, be- 
cause they cannot be profitably extracted under the 
present system of operation; but as improvements are 
constantly being made, there is every reason to assume 
that even this low-grade material will be worked when 
the richer ores are exhausted. 

These statements, therefore, demonstrate conclusively 
that there is no fear of the Chilean nitrate deposits being 
exhausted for 300 years, at least. 

Technique of the Industry. 

As the foregoing historical sketch of the manufacture 
of nitrate shows the process has been about the same 
from the beginning, the only difference consisting of 
some mechanical modifications and the use of improved 
machinery. Chemistry, no doubt, has contributed most 
toward the betterment of the system, but there is still 
plenty of room for improvement. The system used at 
present is based upon the degree of solubility of the 
principal salts contained in the caliche at a temperature 
above 100° Centigrade. These salts, as we have seen, 
are nitrate, chloride and sulphate of sodium. The higher 
the temperature of the water, the greater the solubility 



of the nitrate of sodium, and this solubility is in inverse ^ e us f itrate 

proportion to that of the sulphate and chloride of so- 

dium. However, this system does not solve the commer- 19 
cial side of the problem, since, in order to raise the tem- 
perature of the water, a greater quantity of fuel must 
be consumed, and the better results thus obtained are 
not sufficient compensation for the expense of this extra 
fuel. It is also necessary to bear in mind the fact that 
a heightened temperature would affect, through the dis- 
solving power of the water, the other salts contained 
in the caliche, in proportion to the relative quantity of 
each. Moreover, a rise in temperature would affect like- 
wise the salts contained in the water used in the dissolv- 
ing or lixiviation process. 

The technique of the industry comprises two different 
operations : (l)-The mining of the caliche and its trans- 
portation to the machine in which it is to be worked, and 
(2) The production of the nitrate. The first process is 
very important, as the amount of profit depends largely 
upon the expense involved. It is extremely simple when 
compared with the elaborate machinery necessary in ex- 
tracting other minerals. 

The second process comprises four different opera- 
tions: (1) the crushing of the caliche. (2) the dissolving 
of the caliche in water; (3) the segregating process, and 
(4) the crystallization of the nitrate. 

Crushing machines worked by steam break up the 
caliche and drop it into funnel-shaped carriages, which 
carry it on tracks to the boiling kettles. 

For the dissolving process, a great variety of ma- 
chines has been employed, but all may be classified under 
two heads : (1) — those that cause the caliche to revolve 
about in the water to dissolve it; (2) — those that allow 
the water to percolate through the caliche. 

Heat is used to give the water the greatest possible 
dissolving power. This heat has been obtained either 
by direct contact with fire, or by steam in open or closed 
pipes. 

As may be easily understood, the solution thus ob- 
tained contains not only substances soluble in water, 
but also some which are not soluble. Those not soluble 
are segregated by allowing them to settle. The precipi- 



The i 3 d itr t te Nation °f those in solution is produced by reducing the 
n us ry temperature of the solution to a degree corresponding 
20 to its density, affecting first the common salt and then 
the nitrate. This cooling process is a delicate one, for 
as soon as the sodium chloride has settled, the precipita- 
tion of the nitrate begins, and these two precipitations 
must take place in different receptacles. For the pre- 
cipitation and the crystallization of the nitrate, large 
shallow receptacles are used, called vats (bateas), in 
which the temperature of the solution is reduced to that 
of the atmosphere. This takes from 24 to 40 hours, or 
longer. When the water reaches the atmospheric tem- 
perature, the nitrate crystallizes on the walls and bottom 
of the batea. Then the water is pumped out and the 
nitrate gathered together to dry. 

From this water (mother lye) iodine is extracted, 
and it is then used again for the lixiviation of fresh 
caliche. The nitrate which has already crystallized is 
placed in drying pans for three or four days to allow 
the remaining water to drain off. It is then taken to 
the cancha, a smooth cemented floor, where it remains 
from 12 to 15 days until it is entirely dry. It is then 
packed in bags containing about 200 pounds each, and is 
finally ready for export. 

The oficinas are now equipped with the best and most 
modern machinery, propelled by steam or electricity. 

Saltpeter, as exported, is of gray or yellow color, and 
its composition is as follows : 

Per cent. 

Nitrate of sodium 95 . 

Sodium chloride 2.0 

Sulphate 0.6 

Insoluble matter 0.1 

Moisture 2.3 

Total 100.0 



The process of manufacture, apparently so simple, is 
really a very complicated one, not only because of the 
great variety of machinery employed, but also on ac- 
count of the accuracy required throughout the different 
stages of the process. The nitrate or saltpeter thus ob- 



tained is, as already stated, 95 per cent pure, the corn- ™*J*£** 
mercial standard, and contains over 15 per cent nitrogen. 



From these facts, one can readily see what an impor- 21 
taut role water plays in the production of nitrate, and 
the nitrate zone is in the midst of a desert. A 
considerable quantity of water is needed in every 
oficina, not only for consumption by the inhabitants, but 
also for draft animals and for the process of produc- 
tion. The quality of the water is an important factor, 
as it forms the basis of production, fulfilling as it does 
two functions in the process : One, physical, modifying 
the volume and the state of cohesion of the caliche, and 
the other, chemical, giving rise to combinations. Its 
action upon the caliche varies according to the salts it 
contains, as the dissolving power is modified and the 
ebullition point reached at different temperatures. In 
order to obtain satisfactory results, it is necessary, 
therefore, to make an accurate analysis of the water to 
be employed. The amount necessary for the production 
of each Spanish quintal is about -±6 litres, according to 
an average taken from several reports. This quantity 
is augmented or reduced in accordance with the stand- 
ard of the caliche to be treated, a larger quantity being 
required when the caliches are of a lower standard, and 
a smaller amount when of a higher grade. Besides, the 
quantity of water necessary also varies according to 
the type of machine used and the process of manufac- 
ture. The water obtained from the wells of the desert 
differs in quality according to locality. 
^y The second factor playing an important part in the 
process is fuel. The fuels used in the nitrate industry- 
are coal and gasoline. The greater part of the coal im- 
ported, until the outbreak of the European war, came 
from Great Britain and Australia in sailing vessels 
which returned laden with nitrate.- The gasoline is im- 
ported from Peru. Although the use of the latter fuel 
requires machinery specially adapted, the capital therein 
invested is repaid, for the cost of transporting gasoline 
is less and the quantity wasted smaller than in the case 
of coal. 

V The consumption of coal may be estimated from the 
fact that for every unit of coal used, five of nitrate are 



The Nitrate produced. As in the case of water, the consumption of 
n us *y coal depends upon the standard of the caliche. The 
22 richer the caliche, the smaller the amount of coal con- 
sumed, since the quantity to he heated is smaller, while 
the nitrate is more concentrated, v/ 

The consumption of gasoline is somewhat greater than 
that of coal, and, therefore, it is used as fuel only in the 
treatment of rich caliches. The average consumption is 
only one to four. 

A most important feature of the heating problem is 
that of attaining maximum economy in the use of fuel 
without impairing the ultimate production of nitrate — 
at present a considerable percentage of caloric power 
is wasted. 

x Cost of Production. 

m This is quite a difficult matter to determine, for the 
reason that it varies considerably according to the con- 
ditions of each particular field, — the standard of its 
caliche, the depth of its nitrate-bearing layers, and so on. 

In order, therefore, to arrive at an approximate basis 
for estimating the cost of nitrate production, we must 
assume an oficina operating in deposits containing the 
average caliche of 30 per cent nitrate, and taking into 
consideration the various factors entering into the final 
cost, such as wages, operating expenses, fuel, wear and 
tear of machinery, etc., we arrive at the figure of 50 
cents United States currency per quintal at the cancha. J 

In the Appendix will be found a description of the 
method of transacting nitrate sales. 

Uses of Nitrate. 

Nitrate of sodium is found in the market in two dif- 
ferent grades, viz. : The commercial, with 95 per cent, 
used for fertilizing purposes, and the refined, with over 
96 per cent, applied to manufacturing uses. The fol- 
lowing is a partial list of the many uses to which Nitrate 
is devoted : 

As a special fertilizer. 

In compounding fertilizers. 

In the manufacture of glass. 

In the manufacture of explosives. 



Ill the manufacture of fireworks. ^he Nitrate 

In the manufacture of fusing mixtures. — 

In the manufacture of nitric acid. 23 

In the manufacture of nitrate of potash. 

In the manufacture of arsenate of soda. 

In the manufacture of steel. 

In the manufacture of minium. 

For making chlorine in the manufacture of bleaching 

powders. 
In the purification of caustic soda, etc. 

Nitrate of Soda as a Fertilizer. 

The results obtained in the application of artificial 
manures are most satisfactory when used in such com- 
binations as to supply the soil with the three principal 
constituents of plant life, — nitrogen, phosphate, and 
potash. 

Generally speaking, plants can be supplied with nitro- 
gen in four different forms : First, organic nitrogen 
(dung, green manure, bone meal, blood, fish, etc.) ; 
second, nitrogen in the form of ammonia (sulphate of 
ammonia) ; third, nitrogen in combination with carbon 
and lime (nitrolim, calcium cyanamid) ; fourth, nitro- 
gen in the form of nitrate (nitrate of soda, nitrate of 
lime.) 

Of these four forms, the last named, that of nitrate, 
is the most beneficial to the crop, for the plant can practi- 
cally absorb its nitrogen only in this form. It is thus 
that nitrate of soda takes the first place among nitroge- 
nous fertilizers. 

Nitrate of soda, on account of its extreme solubility, 
is easily absorbed by the plant, thereby entering imme- 
diately into its organism and strengthening its roots. 
This explains the vigorous growth which immediately 
follows. 

On the other hand, nitrate of soda does not exhaust 
the soil because it really prevents an excessive absorp- 
tion of phosphoric acid and potash. It also helps to 
prevent disease and insect pests. 

The positive results of experiments undertaken at dif- 
ferent times and places by several experts acting inde- 
pendently, coupled with the universal admission of the 



The Nitrate increase in weight and value of crops through the 

_ application of nitrate, bear witness to the fact that 

24 nitrate of soda is the best form in which nitrogen can 
be supplied to the plant. 

Nitrogen in other forms must first be converted into 
nitrate before it is ready for the plant, but this process 
is dependent upon temperature and is practically 
stopped by excessive moisture or drought. This is the 
reason why nitrogen is not of equal value in the dif- 
ferent forms above mentioned. 

Several scientists in different countries have indi- 
vidually conducted experiments with the various kinds 
of nitrogenous fertilizers, and the results obtained have 
been practically the same, — a fact which furnishes 
strong evidence of the correctness of their conclusions. 

Dr. Edward B. Voorhees, at the New Jersey Experi- 
ment Station, carried on experiments for quite a 
number of years. The results he obtained have been 
entirely confirmed by similar experiments conducted in 
Darmstadt and other places in Germany by Dr. Paul 
Wagner. Both experts reached the conclusion that for 
every 100 pounds contained in the respective manures, 
the following weights of nitrogen were recovered in the 
crop : 

<^ Nitrogen Recovered in Crop 

t * N 

Manure Voorhees Wagner 

Nitrate nitrogen 62 lbs. 62 lbs. 

Ammonia nitrogen 43 lbs. 44 lbs. 

Organic nitrogen (dry blood) 40 lbs. 40 lbs. 

The results obtained in Belgium by Dr. G. Smets, of 
Liege, are similar. Taking nitrate of sodium .as a basis, 
he makes the following comparison of the relative 
amounts of nitrogen taken up from the different man- 
ures: Nitrate of soda, 100; sulphate of ammonia, 75; 
nitrolim, 69; dry blood, horn-shavings, oil cake and green 
manure, 65; all others, under 60. 

Economic Importance of Nitrate. 

Although the population of the world increases rap- 
idly, the consumption of bread increases at a still greater 



25 



rate, this being due to the fact that its use among the £ h d e us ^ itrate 
lower classes is becoming more and more general every n us ^ — 
day. 

This growing demand may be met in two ways : Either 
by cultivating the virgin lands still available, or by a 
more intense farming of those already under cultiva- 
tion. Both methods have been tried, and a glance over 
the world statistics suffices to show the enormous devel- 
opment that has taken place during the last twenty 
years in the cultivation of new lands and in the con- 
sumption of fertilizers. However, of the two, the second 
method is the most scientifically economic, since it is 
cheaper to double the production in an area already 
prepared for cultivation than to open up new lands. It 
may be stated as an axiom that the consumption of 
nitrate increases in different countries in proportion to 
their scientific development. 

Competition with Atmospheric Nitrogen. 

There is, and there can be, no competition between 
Chilean nitrate and atmospheric nitrate. The produc- 
tion of the latter is so small in comparison with the out- 
put of Chilean nitrate, that the price of the Chilean 
article is the one factor that is to determine whether 
any particular process for the fixation of atmospheric 
nitrate can be profitable or not. If any danger of 
competition should arise, it must be due to either of 
the following causes : When the production of atmos- 
pheric nitrate becomes many times larger than at 
present, or when the Chilean caliches begin to be ex- 
hausted. The first case is extremely doubtful; the second 
cannot happen for many, many years to come, as has 
been shown in the part of this discussion dealing with 
the extent of nitrate deposits in Chile. 

It should be borne in mind that the principal factor in 
the manufacture o§ atmospheric nitrate is water power, 
and, certainly, water power throughout the world is 
becoming more and more expensive on account of its 
practical application to the more lucrative industries. 
Vast sums of money would be required to increase the 
present production of atmospheric nitrate, while those 



The T 1 J itr * te seeking an investment would undoubtedly hesitate and 
n us ry be afraid to devote their money to its manufacture be- 
26 cause of the uncertainty of being able to compete with 
Chilean nitrate, a competition which would be bound to 
be unfavorable to atmospheric nitrate in the probable 
event of a drop in the price of Chilean nitrate. More- 
over, ever since the manufacture of atmospheric nitrate 
was undertaken, its promoters have been promising and 
prophesying an enormous output of their article, and yet, 
in spite of the many years elapsed since then, it has 
failed to materialize and is very far from attaining the 
figures promised or even from reaching the low prices 
expected. 

Chilean nitrate can be stored in bags and used at any 
moment and in any quantity without the slightest detri- 
ment to what may be left in the bag, and it is not difficult 
to handle. 

Labor Problem in the Industry. 

There have been some disturbances in the Pampa Salir 
trera due to differences between capital and labor. The 
Chilean Government has appointed special commissions 
to look into the situation, and has already made im- 
portant changes. 

Life in the nitrate zone is very hard for everybody, — 
owners, employees and common workmen alike. The 
first two classes used to find compensation for this hard 
life in a good table and other material comforts; the 
workmen, in alcohol. 

The trouble between capital and labor was based upon 
the injustice suffered by workmen in some of the oficinas, 
— instances which although exaggerated by the labor 
element, were nevertheless supposed to be general in 
all the oficinas. The principal causes of difference were : 
First, the cost of necessaries, all of which were sold by 
the oficinas; second, the fact that the laborers were not 
paid in legal currency, but in a special money which the 
agencies exchanged at the ports; third, the practice of 
discharging workmen and their families without due ex- 
planation. The result of such a state of affairs can be 
easily imagined. 



These commissions reported that it was necessary to The Nitrate 
provide the lower classes with better material comforts, n us ^ 
schools for children, hospitals, places of amusement, etc. ; 2 ? 

also to suppress the special currency and allow the 
laborers the free exercise of the right of buying their pro- 
visions wherever they chose. The oficinas began to pro- 
vide for these necessities and many of them spent large 
sums with this end in view. 

There was one more thing which called for attention, 
namely special legislation providing compensation for 
accidents among workmen, in other words, an employers ' 
liability law, a need which has been met during the past 
year. Formerly, workmen who met with accidents had 
no right to compensation unless they could prove that the 
accidents were due to negligence on the part of the em- 
ployers. An accident may occur not only through the 
negligence of the employer, but also through the fault of 
the workman or an unforeseen chance. In other words, 
statistics show that less than 25 per cent of accidents are 
due to the employers' negligence, while another 25 per 
cent may be traced to the fault of the workmen and 50 
per cent to chance. So, under the regulations as they 
existed prior to the passage of the law above referred ' 
to, 75 per cent of the accidents were not attended to. 
By this law a workman is entitled to half of his salary 
from the moment the accident occurs until such time 
as he is able to resume his work. If the accident in- 
capacitates him for life, he is entitled to an income equiv- 
alent to 50 per cent of his salary. If he is only partially 
disabled, he receives a compensation corresponding to 
two years' salary. In case the workman loses his life, his 
family is entitled to a yearly income of 20 per cent of 
his salary, the amount being fixed by the court and the 
salary paid monthly. If the salary was a variable one, 
the judge fixes an average. This law provides not only 
for the nitrate industry, but also for all the other in- 
dustries in Chile. 

Effect of the European War on the Nitrate Industry. 

The first result of the European war has been an upset 
in the statistics of the industry, not only on account of 



The Nitrate the difficulty in obtaining accurate information from the 

n us ry countries involved in the war, but also because the quan- 

28 tities of nitrate used for industrial purposes have, 

without doubt, been far above the normal figures for the 

previous years. 

Many of the more important consuming markets have 
been cut off, and the means of transportation, consider- 
ably curtailed. These conditions influenced almost im- 
mediately the production of nitrate. Some oficinas closed 
down at once, but the greater number continued in opera- 
tion during the month of August, 1914. In 'September 
of the same year the output showed a remarkable 
decrease, and of the 170 oficinas at work before the war, 
only 34 were active at the end of the year. The pro- 
duction, which had averaged about 5,000,000 quintals 
a month fell to less than 2,000,000. The stocks on the 
Coast, in August and September 1914, exceeded 1,100,000 
tons, as a result of the heavy production in June and 
July, coupled with small shipments in August and Sep- 
tember. Soon after the declaration of war, nitrate ex- 
ports to Germany, Belgium, and very important dis- 
tricts of France, ceased. Then, again, the scarcity of 
bottoms, due to loss and internment of ships, has pro- 
duced an enormous increase in freight rates. 

The ordinary freight rate from Chile to Europe before 
the war ranged from $6 to $7.50. As the war progressed 
the rate rose, and by degrees went up to $20, at which 
figure it remained for some time, only to rise again 
lately to $25, and even higher. 

The exports from July to December, 1914, reached 
only 14,003,252 quintals; making a total for the year 
1914 of 40,147,500 instead of 60,000,000 exported in 1913. 
During the first half of the present year, the exportation 
was 18,067,462 quintals, while during the second half, 
with estimated figures, for the months of November and 
December, it will amount to 22,600,000 quintals; making 
a total for the year of 40,067,462 quintals. 

The war has diminished the exportation in 1914 by 
20,000,000 quintals, and for the present year by a sim- 
ilar figure; and over and above this figure there is the 
failure of the natural increase which was reasonably 



Industry 

29 



expected, considering that each year the export figure £^ Nttrate 
has increased by several million quintals. 

Of course, the price for the consumer has likewise 
been affected, not only on account of the rise in freight 
rates, but also by reason of the speculation in the dif- 
ferent markets due to fear of lack of transportation 
facilities. 

However, the ultimate effect upon the finances of the 
country has not been so disastrous as has been said. 
It is true that the Government has received only two- 
thirds of the normal export duties, but this curtailment 
in the income of the Treasury has been compensated 
by an additional tax and by economies introduced in the 
budget. 

In regard to the country itself, the results were a 
serious crisis during the second half of 1914, followed 
by a much healthier condition during the present year. 
The crisis caused the restriction of credit in the banks, 
a decrease in the imports, and consequently, a diminution 
in payments in foreign markets, which has resulted in the 
slow but steady rise in the ratio of exchange and econ- 
omy among the people. 

In May, 1915, many of the oficinas that had been closed 
resumed work as a consequence of the rise in nitrate 
prices and the pampa is now in full activity. 

Nitrate Combination. 
The world consumption of nitrate did not keep pace 
with the rapid development of the industry after the 
Pacific War, which gave Chile possession of the Nitrate 
Zone (1881), and, naturally the price of the article fell. 
This crisis of the industry was felt more intensely on 
account of the crisis that the sugar beet industry was 
undergoing at the same time in Europe. Such a situa- 
tion forced the different companies to unite and form 
a Combination, which had for its object the division of 
the world consumption among its various members, each 
being allotted a quota of production in proportion to its 
own producing capacity. This measure almost immedi- 
ately caused a rise in the price. At any rate the oficinas 
salitreras were able to produce almost twice the amount 



The I I l itr * te a ^°^ed to each of them. Very expensive machinery had 

already been acquired for production on a larger scale, 

30 and the necessity of increasing the world consumption 
was evident. This was the reason for the organization 
of a committee, which took up the work of propaganda, 
not only in those countries where nitrate was known, but 
also in such where the possibility for new markets was 
evident. After a short time, the wonderful work of this 
committee became manifest. Between 1886 and 1890 it 
managed to raise the world consumption from 9,000,000 
to 23,000,000 quintals. To-day it has organized sub-com- 
mittees or delegations in almost every country in the 
world. The propaganda is essentially of a scientific 
nature, and the delegations attend to all technical in- 
quiries from consumers. The committee has its head- 
quarters in London. 

The exportation of* nitrate began in very small quan- 
tities in 1830. In the period between 1830 and 1835, 
360,000 Spanish quintals were exported. At the present 
time, in a like period, the exportation reaches 300,000,- 
000 Spanish quintals. 

%Nitrate Railways. 

As a logical result, the development of the nitrate in- 
dustry brought about the construction of railway lines 
needed for transporting the article to the shipping ports. 

The first railway built in the nitrate zone was that 
from Iquique to Moria, the construction of which was 
begun in 1868 by the firm of Montero & Brothers, under 
a contract with the Peruvian Government. Its operation 
was begun in 1875. 

The nitrate railways have been constructed by private 
companies independent of each other, with the result that 
there is no harmony in the whole, their gauges, rolling 
stock and systems of operation being quite different. 

The ports to which the various lines lead are, from 
North to South : Pisagua, Junin, Caleta Buena, Iquique, 
Tocopilla, Mejillones, Antofagasta, Caleta, Coloso and 
Taltal. The railway systems affording an outlet for 
nitrate to the ports mentioned belong, as already stated, 
to different companies, for which reason we will con- 
sider them by groups according to companies. 



The Nitrate Eailways Company carries the nitrate to £he Nitrate 

the ports of Pisagua and Iquique ; the Junin Eailway, n US Ty . 

to the port of the same name; the Agua Santa line, to 31 
Caleta Buena; the Anglo-Chilean Nitrate and Eailway 
Company, to Tocopilla; the Antofagasta and Bolivia 
Eailway Company, to Antofagasta ; and the Coloso and 
Taltal lines to the ports of these names. 

The characteristic of the nitrate railways is that they 
are formed by trunk lines from which radiate a series of 
branches to the different oficinas, and that they have 
been built under special contracts guaranteeing a mini- 
mum tonnage of freight. 

The capital invested in nitrate railways proper ex- 
ceeds 12,000,000 pounds sterling. 

Nitrate of Soda in the United States. 

The enormous development in agriculture that has 
taken place in this country during the last years, — a 
development no doubt due to the more general instruc- 
tion in agriculture, and to the work of experiment sta- 
tions established throughout the different states, — is the 
cause of the rapid increase in the use of fertilizers, 
among them, nitrate of soda. 

In 1850 there were 1,449,073 farms, with a total acreage 
of 293,560,614. 

In 1880 there were 4,008,907 farms, with a total acreage 
of 536,081,835. 

In 1910 there were 6,361,502 farms, with a total acreage 
of 878,798,325. • 

If we look into the statistics of production, we will 
find that the increase is proportionately larger than that 
of the land under cultivation. This difference is due to 
improved methods of cultivation, the use of fertilizers, 
the better organization of the industry, the wider dis- 
semination of agricultural training, and the experiment 
stations established in different states. 

In the last ten years the consumption of nitrate has 
doubled. The importation in 1904 was 293,574 tons, 
and in the year ending the 30th of June 1914, it was 
564,000 tons. The consumption for the present year 
is over 600,000 tons. At no distant date this figure will 



The Nitrate almost reach that which represents the present produc- 
n us ry tion of nitrate in Chile. This result appears almost 
32 certain if we study the increasing percentage of culti- 
vation, together with the constant increase in the lands 
under cultivation. 

Without taking into consideration the commercial in- 
terchange of other products between the United States 
and Chile, the urgent necessity of providing steamship 
facilities between the two countries is manifest. 

United States exports to Chile in 1904 amounted to 
$4,798,526, while in 1914 they were $17,408,724. Chilean 
imports into the United States, which in 1904 amounted 
to $10,775,810 have now reached the figure of $25,722,128. 

The above figures show at present a balance of trade 
in favor of Chile amounting to $8,289,736, but it must 
be pointed out that very often a wrong conclusion is 
drawn from them. The commercial exchange between 
the United States and Chile must be studied without 
regard to the trade in nitrate of soda, as this country 
cannot buy this substance anywhere else, and if we 
deduct the value of this article, the proportion of ex- 
change and the result are opposite. Chile buys five 
dollars ' worth of products in the United States for every 
dollar's worth which the United States buys in Chile. 

Part Played by the Nitrate Industry in the Economic 
Life of the Country. 

When it is considered that the nitrate industry by 
itself supports numerous railway companies, and con- 
stitutes almost 50 per cent of the total freight of the 
coastwise trade, — since the zone itself is sterile and 
almost all the articles and provisions required for its 
consumption have to be brought from other parts of 
the country, — the important part it plays in the eco- 
nomic life of the country may be easily understood. 

Five per cent of the total population is found in the 
nitrate zone. Aside from agriculture, this industry pays 
in salaries one-third of the total amount devoted to sala- 
ries in all the other domestic industries. One-fourth of 
the capital invested in the various industries in Chile is 
devoted to the nitrate trade. 



Conclusions. ™ e * itrate 

Industry 

Why is it that Chilean nitrate, its qualities as a — 

fertilizer being well known, is not used now throughout 
the world, and in much larger quantities'? 

This question does not imply that its consumption has 
not increased considerably. One can easily see in the 
tables of exports that its use is becoming more general 
every day; but has it reached the figure that it should, 
considering the fertilizing properties of the substance? 
Xo ; and as this phase of the problem is very interesting, 
we must study it, ; 

Propaganda of a scientific nature, which is more 
serious and profitable, has not been disregarded, but it 
could well be more intense. Industrial and commer- 
cial propaganda, it may be said, exists only on a very 
small scale.* So far, the nitrate industry has not 
attempted to popularize the use of this product in other 
ways than as a fertilizer. What has been done in this 
direction is due to the efforts of manufacturing in- 
dustries throughout the world, on their own initiative. 

As we have said, commercial propaganda, properly 
speaking, does not exist in the industry. This system 
has reached a high degree of development in the United 
States in all industries, with results well known to every 
one, and it might well serve as an example to the nitrate 
trade of Chile. But at the same time, it ought to be ac- 
companied by facilities for the acquisition of the sub- 
stance. This part of the problem does not interest Chile 
alone ; it should interest still more the agricultural 
countries, since the productive power of the land is 
doubled by the use of nitrate, at a very small expense 
comparatively. Besides, competition of other fertilizing 

* Publisher's Note. — In this connection it is interesting to note that 
nothing was done, by way of Scientific Propaganda in North America, 
until 1S9S. when the Office of Propaganda was established here in New York. 

The three year period tonnages of Nitrate Consumption in the United 
States are especially interesting as fairly indicating the result of this work. 

Three-Year Period Tonnages of Nitrate Consumption in the United States. 

1889-91 281,000 Tons 

1892-94 304,000 " 

1895-07 340,700 " 

1898-00 480,000 " New York 

1001-03 677,000 " Propaganda 

1904-06 940,900 " Office 

1007-09 1,059,400 " Opened 

1910-12 1,509,700 " March, 1898 



The Nitrate products ought to be considered, and this is what in- 

!_J! terests the nitrate industry more than it does other 

34 countries. The only solution of the problem lies in the 
reduction of the price, but how shall this be accom- 
plished? Very different factors must here be considered, 
and they must be classified before we can gain an exact 
knowledge of the question. 

One factor is the cost price of the nitrate, and the other 
is its price when it reaches the consumer. In dealing with 
the cost price, we must take into consideration different 
things, the price of the raw material, that is, the price 
of the caliche on the ground, the cost of production, 
transportation to the port, shipping facilities, discount 
on the drafts corresponding to the total value of the 
sale price, and the profit which must be left to the 
capital invested in the industry. These factors con- 
stitute the first group. A second group may be formed 
by maritime and land freights, insurance and commis- 
sion to middlemen. Finally, speculation, profit of the 
dealer in fertilizers, and interest on the value of the 
quantity bought by the farmer, who generally pays for 
his fertilizer when he harvests his crops; these may 
form the third group. 

We shall now analyze each group, to see in which one 
the price might be reduced. 

The cost of the Nitrate land is a value more or less 
fixed, with a tendency to increase. As in every industrial 
business, the price tends to increase in greater propor- 
tion than the interest on the capital, and it could not 
be much modified by the action of the industry. The cost 
of production might be lowered by perfecting the 
methods in use, for the purpose of extracting the greatest 
possible quantity of nitrate from the caliches, and econo- 
mizing fuel. As for transportation to the port and 
shipping facilities, these have advanced a great deal; 
but conditions might still be bettered, and the Chilean 
Government is now giving attention to this matter. 

Discarding these factors, which give little promise of 
economy, we come to those related to the commercial 
side of the nitrate industry. 

Freight Charges. — The disturbed conditions resulting 
from the war in Europe have brought about a complete 



change in all freight charges, including those on nitrate. The Nitrate 
The destruction of a considerable number of steamers, n us ^ 



and further losses in this direction, which may be ex- 35 

pected before the war ends, will reduce appreciably the 
means of transportation. So the freight rate, after the 
war, will be, if not the same as at present, at any event 
higher than before the war. The nitrate trade, as well 
as other industries, not only in Chile, but also in other 
countries, will require an increase in steamship facilities 
in order to replace the service formerly furnished to a 
great extent by companies in the belligerent countries. 
This policy is in process of development in the United 
States, and in Chile it may easily be encouraged by laws 
promoting the development of our national steamship 
lines. 

What is said in regard to steamship facilities may 
also be said in regard to insurance companies in Chile, 
for which there is a great chance for growth. 

The commissions earned by middlemen w T ho often spec- 
ulate, form a group in wmich reductions of importance 
may be brought about, by changing the system now used 
for another, such as the project of the centralization of 
sales, a system that would result in real economy of 
expense, and also prevent fluctuations in the price, — 
a very important feature in the increase in consump- 
tion. Any marked fluctuation in the price has a two-fold 
influence. The farmer is not inclined to pay more for his 
fertilizer one year than he has paid the previous year. 
He is very quick to complain of a rise in price, but 
takes no notice of a reduction when it comes. On the 
other hand, the dealer in fertilizers, when the price 
fluctuates, never knows what profit he is to derive from 
the sale of a certain quantity of nitrate, and sometimes 
even the profit is changed to loss. For this reason he 
prefers to encourage the sale of other fertilizers which 
bring him a sure margin of gain, and he then becomes 
a propagandist against the use of nitrate. I know of 
some merchants who have nitrate in their stores solely 
to avoid the accusation that they have not a complete 
stock of fertilizers; and in some instances they sell 
nitrate only on condition that the farmer buys a much 
larger proportion of other fertilizers. 



The Nitrate There are numerous markets which are closed to- 
n us ry day to Chilean nitrate, — markets in which there is no 
36 consumption because there is no nitrate on sale, and 
others where there is none on sale because there is no 
consumption. The time has now come to break down this 
syllogistic circle, and this may easily be accomplished 
by commercial propaganda. 

The nitrate industry must be reorganized, and taking 
into consideration the different parties interested, this 
cannot be accomplished without the intervention of the 
Government. 

Some of the nitrate companies produce the substance 
at a low price, the desideratum for them being to produce 
and sell great quantities at such a price as will leave 
them some profit.. Others produce at a higher cost, pre- 
ferring to produce less and sell at a high price. On the 
other hand, the object of the middlemen is to buy at a 
low price and sell at a higher one. 

/The interest of the Chilean Government lies in the ex- 
portation of the greatest possible quantity, the utiliza- 
tion to the utmost of the substance as found in the soil, 
and the increase of consumption by regulating the price 
in the different markets as nearly as possible. So the 
interest of the Government and that of the producers are 
not separate; and the Government, being interested, as 
it is, in the production of all the different companies, 
has not only the right, but almost the duty to interfere 
in the organization of this industry which constitutes the 
most important basis of its economic life. 

This is not something new and unusual. The German 
Government interfered in the potash industry without 
owning the raw material. And in Sicily, in the sulphur 
industry, the same thing has been done. 



APPENDIX 



[37] 



CONTENTS 

Nitrate Exports. 

Method of Transacting Nitrate Sales. 

Nitrate of Soda as a Fertilizer (Results of Experiments) 

Nitrate Railways. 

Statistics for the United States. 

Nitrate Companies. 

[39] 



APPENDIX. 



Nitrate Exports. 

The exportation of nitrate began in 1830, in very 
small quantities. Now it has reached the high figures 
shown in the following table. The amounts are stated in 
Spanish quintals, one quintal being equal to 101.44 
pounds. 



Years. 

1S30-1S34. 
1835-1839. 
1840-1844. 
1845-1849. 
1850-1854. 
1855-1S59. 
1860-1864. 
1S65-1S69. 
1S69 



1S70 

1871 

1S72 

1873 

1S74 

1S75 

1S76 

1-77 



1879 

1SS0 

1881 

1882 

1883 

1884 12,152,000 

9,475,000 

9,805,000 

" 15,495,000 

16,682,000 



Spanish 
Quintals. 

361,3S6 
761.349 
1,592,306 
2,060,592 
3,260,492 
5,638,763 
6.979,20S 
10,594,026 
2,507,000 
3.943,000 
3,606,000 
4,421,000 
6,264,000 
5.583,000 
7,191,000 
7,317,000 
4,991,000 
7,023,000 
3,161,000 
4,869,000 
7,739,000 
10,701,000 
12,820,000 



Years 
1S89. 

1890. 
1891. 
1S92. 
1893. 
1894. 
1S95. 
1896. 
1897. 



Spanish 
Quintals. 

20,682,000 

23,373,000 

18,739,000 

17,47S,000 

20,655,161 

23,947,014 

27,285,205 

25,175,832 

24,971,648 

1898 27,903,553 

30,213.532 

31,741,293 

27,691,298 

30,089.440 

31,694,954 

32,696,180 

36,717,472 

37,564,460 

35,987,237 

44,587,177 

46,390,656 



1899 

1900 

1901 

1902 

1903 

1904 

1905 

1906 

1907 

1908 

1909 

1910 50,781,241 

1911 53,250,327 



1912 

1913 

1914 

1915 (Jan. to June) 
1915 (July to Nov.) 



54,197,439 
59,529,110 
40,147,463 
18,067,462 
21,500,325 



[41] 



The Mustr e Method of Transacting Nitrate Sales. 



42 



The following is a brief account of the different trans- 
actions which Nitrate undergoes from the time it is 
purchased at port of shipment to the time it is delivered 
to the consumer. The operations vary to some extent, 
such as for instance in the case of Valparaiso and 
London payment, weighing on arrival, etc.; but in gen- 
eral the various operations are, briefly as follows: 

Under the contract Nitrate is purchased for delivery 
at a named port on a specified date, and the buyer is 
allowed 40 days from that date in which to provide a 
vessel to load the Nitrate at the particular port named 
in the contract. If the vessel is not ready to load within 
the time allowed, the Nitrate remains in the warehouse 
at the risk of the buyers, who must pay rent thereon. 
Payment. for the Nitrate is due at the expiration of 30 
days from the delivery date, whether or not the Nitrate 
is loaded. 

On arrival of the vessel to load the Nitrate, notice is 
given by the buyers to the sellers in accordance with 
contract, and the Nitrate is thereupon delivered by sell- 
ers under superintendence of buyers f and lightered to the 
vessel. Samples are taken by both buyers and sellers, 
and sent to the official assayers in Valparaiso for analy- 
sis, the mean of two being the basis for calculating re- 
fraction. 

In due course, advice of delivery on the contract is 
telegraphed to Valparaiso, and if it is " Coast pay- 
ment,' ' payment is made in Valparaiso in first class 
drafts on London at 90 days' sight. If the contract is 
for " London payment," sellers retain Bills of Lading 
and forward them to London, where in due course they 
are taken up by buyers against payment in cash under 
discount, or free of discount if the vessel has not ar- 
rived, before due date reckoned at 90 days sight from 
arrival of Bills of Lading in London. In the case of 
" London payment," buyers have to insure the Nitrate, 
and deposit the insurance cover with the sellers until 
payment is made. 

Upon the vessel completing her loading, buyers give 
the Captain her sailing orders, which may be for a direct 
port or for a port for orders. 



Upon arrival of the vessel at destination she must be T ^ e Nitrate 
discharged according to the custom of that particular n us *? 
port unless any special conditions are stated in the 43 

charter. Usually the Nitrate is weighed on arrival, and 
either put in storage in the port or into lighters or rail- 
way trucks for delivery into the interior, where it is 
either stored or sent straight through to consumers. 

Freight is payable at port of destination — one-third 
on arrival of the vessel and the balance when called for 
according to the quantity discharged. 

Such bags as may have become damaged on the way 
are, provided that they are not too much damaged, re- 
paired, and any loose Nitrate rebagged into new bags. 
These operations are done on board, the receivers pro- 
viding the bags and twine, and the ship the labor. The 
ship pays the stevedoring at the port of discharge. 

It is customary to insure against Marine risk and War 
risk now and in the case of an exporter selling on cost 
and freight or cost, freight and insurance terms, the Ni- 
trate has to be covered for 10 per cent over the sale 
price. 

There is another custom with regard to sales made on 
cost and freight or cost insurance and freight terms, 
which is that the Nitrate is invoiced on the shipping 
weight in quintals converted at the rate of 101.44 pounds 
English net equal to 100 pounds Spanish net. Freight is 
deducted from the invoice to the c. & f. or c. i. f. buyer 
at the arbitrary conversion of 10,000 quintals Spanish 
net equal to 435 tons English gross, while the buyers pay 
the freight to the ship owners on the actual outturn 
weight. On this conversion the freight payable by the 
buyer is roughly 3.94 per cent greater than the sum 
deducted in the Invoice. In c. & f. sales Marine Insur- 
ance and War Risk is covered by sellers for buyers ac- 
count — buyers refund the gross cost on lifting docu- 
ments while sellers retain any allowances granted by 
underwriters in the way of discount or what not. As to 
brokers, it is customary to employ them both on the coast 
and in Europe. 



44 



The Nitrate Nitrate of Soda as a Fertilizer. 

Industry- 
Nitrate of Soda and sulphate of ammonia being the 
two most important of all fertilizers, have been very 
closely studied. Stutzer published a table giving the 
average increase in various crops due to the use of ni- 
trate of soda instead of sulphate of ammonia. It is as 
follows : 

Average increase 
in pounds. 

196 
55 

125 

360 
2,024 

321 
3,825 

The following tables and illustrations show the results 
obtained in some of the experiment stations. 

Experiments with Fertilizers on Sweet Potatoes. 

Bushels per acre, 



Crop. 

Rye 

Wheat 


Number of 
experiments. 

4 

88 


Barley 
Potatoes 


81 
36 


Beets 
Hay 

Mangolds 


144 
38 
36 



Cost of 



Kind of Fertilizer and quantity per acre. Fertilizer. Large. Small. Total. 

1. No manure 157 51 208 

2. 320 lbs. bone-black, 160 lbs. 

Muriate of Potash $7.70 205 36 241 

3. 200 lbs. Nitrate of Soda, 320 lbs. 

bone-black, 160 lbs. Muriate of 

Potash 12.34 270 58 328 

4.20 tons stable manure $30.00 263 61 324 



South Carolina Experiment Station. 

(Clemson College, S. C.) 
Cotton. 



The Nitrate 
Industry 

4.') 



Results of experiments in 1906. 
Fertilizer Yield 



per acre. 

None 

352 Acid Phosphate . . . 

44 Muriate of Potash. . 

352 Acid Phosphate, 
44 Muriate of Potash. 

352 Acid Phosphate, 
44 Muriate of Potash, 
SS Cottonseed Meal .. . 

352 Acid Phosphate, 
132 Nitrate of Sou* 



per acre. 
Lbs. 

610 

627 
651 



Results of experiments in 1908. 
Fertilizer Yield 

per acre. per acre. 



Lbs. 

None 
704 

8S 



Lba 



'26 



891 



352 Acid Phosphate, 
44 Muriate of Potash, 

Nitrate of Soda 1,040 



132 

352 
88 

132 

352 
44 
B8 

132 



Acid Phosphate, 
Cottonseed Meal, 
Nitrate of Soda 1,133 

Acid Phosphate, 
Muriate of Potash, 
Cottonseed Meal, 



704 

S3 

704 

88 

176 

704 
264 

704 

88 

264 

704 
176 
264 

704 

88 

176 

264 



Acid Phosphate . . 

Muriate of Potash. 

Acid Phosphate, 
Muriate of Potash. 

Acid Phosphate, 
Muriate of Potash, 
Cottonseed Meal . 

Acid Phosphate, 
Nitrate of Soda. . . 



Acid Phosphate, 
Muriate of Potash, 
Nitrate of Soda. . . 



349 

689 
410 

636 

901 
954 

993 



Acid Phosphate, 

Cottonseed Meal, 

Nitrate of Soda 1,033 

Acid Phosphate, 

Muriate of Potash, 

Cottonseed Meal, 

Nitrate of Soda 1,073 



Hops. 

A Record of Four Years' Experiments with Hops. 
The experiments were conducted at Golden Green, 
Hadlow, near Tunbridge, England, and nnder the super- 
vision of Dr. Bernard Dyer. Seven plots were arranged, 
all except No. 7 receiving equal and ample quantities of 
phosphoric acid and potash, but varying amounts of 
Nitrate of Soda, and (plot 7) thirty loads of stable 
manure. The fertilizing of the plots, and the average 
crop, kiln dried hops per acre, with the percentage of 
gain over the plot not treated with Nitrate, are shown in 
the following table. 



The Nitrate Kiln Gain 

Industry • Plot anc * Fertiuzer - dried hops, per cent. 

1. No Nitrate 9 . 75 cwt 

46 2. 2 cwt. Nitrate 12.00" 23 

3. 4 " " 13.67 " 39 

4. 6 " " 13.75 " 41 

5. 8 " " . . 14.58 " 49 

6. 10 " " 14.58 " 49 

7. 30 loads manure 10.25 " 5 

Wheat. 

According to the " Book of Bothamsted Experi- 
ments," 1905, the average crops produced during! a 
period of 51 years on plots of ground fertilized with 
different manures was as follows: 

Bushels 
"■ per acre. 

No manure 13 . 1 

Minerals with no Nitrogen 14. 9 

Minerals with 43 lbs. Nitrogen 24 

Minerals with 86 lbs. Nitrogen 32 . 9 

Minerals with 129 lbs. Nitrogen 37 

and the increases in straw are even more marked. 

It is also said that experiments covering a period of 
ten years (1892-1902) showed that nitrate of soda pro- 
duces more nitrogen than ammonia salts, yielding 16 per 
cent more grain and 26 per cent more straw. 

Barley. 

The following table is given as representing the result 
of 50 years ' experiments on barley : 

Dressed grain. Straw. 

Average Average 

50 years. 50 years. 
Manure. Bushels. Cwts. 

No minerals and no Nitrogen 15 . 3 8.8 

Superphosphate only and no Nitrogen 20.0 10.2 

Alkali salts only and no Nitrogen 16 . 2 9.0 

Complete minerals, no Nitrate 20.5 10.7 

Nitrate of Soda alone 30.5 18.2 

Superphosphate and Nitrate 43 . 9 26.2 

Alkali salts and Nitrate 31.7 19.9 

Complete minerals and Nitrate 43 . 6 27.4 





Yield per acre. 


Lbs. per acre. 


in 1905 in 19J6 
lbs. lbs. 


300 


750 930 


300 . 




42 


1,116 900 


300 . 




84 


1,272 1,284 


300 . 





4. Acid Phosphate 

Nitrate of Soda 126 1,440 1,776 

It will be readily seen by this table that through the 
addition of nitrate of soda, the yield of both dressed 
grain and straw was more than doubled in every case. 



Maryland Agricultural Experiment Station. 
Bulletin No. 91, Page 44, Table 7. • 



N trate of Soda vs. No Nitrate of Soda Applied on Wheat; 
Wheat Unfertilised in Fall. 

Yield of grain 

Plot per acre, 

No. bushels. 

1. Neither fertilizer nor Nitrate of Soda 10.4 

2. Nitrate of Soda with no other fertilizer 18.1 



Top-Dressing Experiments. 

The official Agricultural Experiment Stations have 
made many experiments to determine the value of top- 
dressings of Nitrate of Soda, particularly the New Jer- 
sey Station. The work of this station demonstrated the 
profit value of Nitrate top-dressing on various fruits and 
vegetables. The Ehode Island Experiment Station made 
a top-dressing test on grass land and the results also indi- 
cated a profitable use of this chemical fertilizer. 



47 



Cotton. The Nitrate 

Industry 

The following table shows the results of experiments ■ 
made on the farm of Mr. J. C. Moore near Auburn, Ala- 
bama. The ground was laid off into four plots, each 
containing ten rows, and covering one-sixth of an acre. 



Plot. Fertilizers used. 

1. Acid Phosphate 

2. Acid Phosphate 

Nitrate of Soda 

3. Acid Phosphate 

Nitrate of Soda . . . . 



The Nitrate 
Industry 



48 



The experiment was made on three plots, all of which 
were treated with ample quantities of Phosphoric Acid 
and Potash. One plot received no Nitrate, one plot a 
top-dressing of 150 pounds per acre, and the remaining 
plot a top-dressing of 450 pounds of Nitrate per acre. 
The seed used was one-quarter red clover, one-quarter 
redtop, and one-half timothy. The yield in barn-cured 
hay was as follows: 

Tons 

No Nitrate 1. 60 

150 lbs. Nitrate 2.24 

450 lbs. Nitrate 3.28 

The season was not good hay weather on account of 
an early and severe drouth, yet the top-dressing of 150 
pounds of Nitrate of Soda, per acre increased the crop of 
hay 40 per cent, and the top-dressing of 450 pounds gave 
an increase of 105 per cent. In summarizing the results 
the Station reports that in spite of the weather being 
so unfavorable that there was practically no second crop, 
a top-dressing of 150 pounds of Nitrate of Soda per acre 
increased the crop in value $6.94, at a cost for Nitrate of 
$3.30; a top-dressing of 450 pounds per acre increased 
the value of the crop $16.98 at a cost of $9.90. 



Experiments on Tobacco at the Kentucky Experiment 

Station. 









Yield of tobacco, pounds. 




Value of 




Fertilizer per acre. 


Bright. 


Red. 


Lugs. 


Tips. 


Trash. 


Total. 


per acre 


1. 


No manure 




200 


360 


60 


540 


1,160 


$67 20 


2. 


160 lbs. Nitrate of 


















Soda 


230 


450 


310 


90 


530 


1,610 


138 40 


3. 


160 lbs. Sulphate 
of Potash; 160 
lbs. Nitrate of 


















Soda 


190 


755 


605 


120 


140 


1,810 


190 45 


4. 


320 lbs. Superphos- 
phate ; 160 lbs. 
Sulphate of Pot- 
ash; 160 lbs. Ni- 


















trate of Soda. . 


310 


810 


420 


10 


360 


2,000 


201 20 



Wheat Experiments in England. InL^^ 

From 100 to 150 pounds of Nitrate of Soda per acre 

should be broadcasted on wheat, as soon as the new 
growth shows in the spring. The results of such treat- 
ment are shown by experiments made by three English 
gentlemen, which are tabulated as follows, mineral plant 
food being present in abundance: 

I. No Nitrate, 23 bu. 300 lbs. Nitrate, 33.5 bu. Gain 46 per cent. 
II. No Nitrate, 15 " 300 lbs. Nitrate, 28.0 " Gain 87 " " 
III. No Nitrate, 34 " 300 lbs. Nitrate, 49.0 " Gain 44 " " 

Average gain 59 per cent. 

REPORTS OF OFFICIAL EXPERIMENTS. 

South Carolina Agricultural Experiment Station. 
From Bulletin No. 56, Page 5. 
Wheat. 

I. Comparison of Varieties. IV. Home Manures. 

II. Quantity of seed per acre. V. Commercial Fertilizers. 

III. Experiment with Nitrogen. VI. Tillage. 

If wheat is sown npon land deficient in organic matter, 
it is wise to use a complete fertilizer, containing Nitro- 
gen, phosphoric acid and potash. 

If wheat shows an unhealthy appearance in early 
spring, especially upon sandy lands, an application of 
seventy-five pounds of Nitrate of Soda will prove bene- 
ficial provided there is enough phosphoric acid in the 
soil to co-operate with it to make the grain. 

Experiment with Nitrogen. 
To compare effects of Nitrogen from cotton-seed meal 
and Nitrate of Soda, the latter applied with the seed and 
as a top-dressing, the intention was to use on each plot 
a constant quantity of phosphoric acid and potash as the 
equivalent of these ingredients in 200 pounds of cotton- 
seed meal. 

Bus. 

The first plot received Cottonseed Meal alone — yield 17.5 

The second, Phosphoric Acid, Potash and Nitrate of Soda 
all applied with the seed — yield 20.8 

The third received only Phosphoric Acid and Potash — yield. 17.6 

The fourth received in addition to Phosphoric Acid and Pot- 
ash applied with the seed, Nitrate of Soda as a top-dress- 
ing — yield 19 . 4 



The industr e Nitrate Railways. 

l 1. The Nitrate Railways Company (including the 

Pisagua and Lagunas Branch) — Value of lines, £4,000, 
000 ; length of lines, 585 kilometers ; gauge, 1.435 meters ; 
annual traffic, about 500,000 passengers and 1,200,000 
tons of freight. 

These lines connect the Tarapaca deposits with the 
ports of Iquique and Pisagua, The trunk line is 250 
kilometers, and the branches, 335. 

Starting from Pisagua, the trunk line goes inland as 
far as Jazpampa, from whence it takes a southerly di- 
rection as far as Lagunas. Another section starts from 
the port of Iquique and connects with the trunk line at 
La Noria. 

2. The Junin Railway. — This line affords an outlet 
through Caleta de Junin for the nitrate produced in the 
Department of Pisagua. It is owned by the Compania 
de Salitres y Perro-carril de Junin. The line starts 
from the height of Junin at 664 meters above sea level, 
and connects with La Caleta by means of inclined planes. 
Gauge, 0.762 meters; length of line with branches, 103 
kilometers ; cost of line, £265,000. 

3. The Caleta Buena and Agua Santa Railway. — This 
line connects the nitrate fields in the Agua Santa, Negre- 
iros and Huara with Caleta Buena. The line in the 
height is linked with La Caleta by means of inclined 
planes which overcome the altitude of 745 meters above 
the pier. 

This line belongs to the Compania de Salitre y Ferro- 
carril de Agua Santa. Gauge, 0.762 meters ; length, 103 
kilometers. At kilometer 29 the line divides, one branch 
going to Agua Santa and the other to Huara. It is 
valued at £460,000 and carries an annual traffic of about 
6,000 passengers and some 400,000 tons of freight. 

4. The Anglo-Chilean Nitrate Railway. — This line 
operates in the nitrate fields of the Toco district. Its 
value is estimated at £650,000, with an annual traffic of 
about 65,000 passengers and 400,000 tons of freight. The 
extent of the line is 123 kilometers, and its gauge, 1.067 
meters. 

5. The Antofagasta and Bolivia Railway. — This line, 
although an international one, since it connects the Chil- 



ean port of Antofagasta with the cities of Oruro and La The Nitrate 

Paz in Bolivia, has not lost its original characteristic as — 

a nitrate railway, because its most ^important section has 51 
for its object the transportation of nitrate. It is owned 
by the Antofagasta and Bolivia Railway Company, the 
value of whose railroads and water works is about 
£9,000,000. The total length of the line is 1,156 kilo- 
meters, of which 435 kilometers are comprised in the 
Chilean section between Antofagasta and Ollague, not in- 
cluding the branches to the nitrate . districts, which 
branches, with their sub-branches, have a length of 425 
kilometers. The gauge is 0.762 meters. 

It carries yearly some 280,000 passengers, and about 
1,500,000 tons of freight. Its receipts amount to £1,- 
000,000 per year, approximately. Its principal branches 
are : 

Kilometers. 

Prat-Mejillones 77 

Antofagasta to above branch 35 

Boquete branch Ill 

Collaguasi branch 96 

Minor branches 106 

6. The C diet a Coloso-Agnas Blancas Raihvay. — The 
production from the nitrate fields in the Aguas Blancas 
district finds an outlet through this line, whose length is 
186 kilometers, besides 50 kilometers in branches and 
sub-branches. Its gauge is 0.762 meters. 

At kilometer 92 it divides into two series of branches ; 
those of the north reaching as far as the Oficina de Cas- 
tilla, and those of the south, as far as the Oficina de Val- 
paraiso ; at about the same point another branch starts, 
connecting with Pampa Eica. It carries yearly about 
250,000 tons of freight. 

The cost of this railway and the port works amounts to 
£950,000. Its revenues may be estimated at £112,500 a 
year. 

7. The Taltal Raihvay. — This railroad gives an out- 
let to the nitrate from the interior of the Atacama desert. 
It belongs to the Taltal Eailway Company. Its length is 
300 kilometers; its gauge, 1.067 meters, and its cost is 
estimated at £1,250,000. Its annual business amounts to 
some 85,000 passengers and 500,000 tons of freight. 



The Nitrate 
Industry 

52 



Imports of Nitrate of Soda to the United States. 



Year. Tons. 

1889 79,000 

1890 104,000 

1891 98,000 

1892 97,000 

1893 107,000 

1894 100,000 

1895 127,000 

1896 106,500 

1897 107,200 

1898 145,000 

1899 155,000 

1900 180,000 

1901 192,000 



Year. Tons. 

1902. 107,000 

1903 264,000 

1904 274,000 

1905 305,000 

1906 361,900 

1907 351,600 

1908 308,800 

1909 399,000 

1910 503,600 

1911 537,000 

1912 469,100 

1913 560,000 

1914 527,895 



Average Price in the United States. 
From July, 1913, to present date. 

1913. 1914. 1915. 

January $2.24 $1.88 

February 2.24 2.08 

March 2.26 2.19 

April 2.24 2.27 

May 2.21 2.30 

June 2.15 2.29 

July $2.18 2.12 2.28 

August 2.45 2.18 2.32 

September 2.40 2.04 2.41 

October 2.40 1.93 2.79 

November 2.31 1.93 2.95 

December 2.20 1.93 3.00 



53 



Stock. 


Production 
in one year. 


Total. 


21,176 


125,760 


146,936 


136,874 


677,485 


814,359 


31,084 


28,338 


59,422 


41,593 


186,014 


227,607 


226,158 


1,300,461 


1,526,619 


104,418 


435,747 


540,165 


133,585 


728,452 


862,037 


426,765 


1,422,380 


1,849,145 



Nitrate Companies. i^dus™* 

In its earliest days, it was British capital that con- 
tributed most to the development of the industry. At 
present Chilean and German money are also freely in- 
vested. 

The following table shows the different companies and 
the proportionate production: 

Name of The Oficina. 

1. Abra 

2. Aconcagua (Antofagasta) 

3. Adriatico (ex-Neuva Palmira) . . 

4. Aguada 

5. Agustin Edwards (Antofagasta) 

6. Agua. Santa 

7. Alemania (Taltal) 

8. Alianza 

9. Alianza (Taltal) 

10. Amelia 

11. Angamos (ex-Carmen) (Anto- 

fagasta) 

12. Angela 

13. Anibal Pinto (Antofagasta) . . . 

14. Anita (Antofagasta) 

15. Aragon 

16. Argentina 

17. Arturo Prat (Antofagasta) .... 

18. Atacama (Taltal) 

• 19. Aurelia (Antofagasta) 

20. Aurora 

21. Aurrera 

22. Ausonia (Antofagasta) 

23. Avanzada (Aguas Blancas) .... 

24. Ballena (Taltal) 

25. Barcelona 

26. Bellavista 

27. Bonasort (Aguas Blancas) .... 

28. Britannia (Taltal) 

29. Buen Retiro 

30. Buena Esperanza (Toco) 

31. Buenaventura ... .' 

32. Cala-Cala 

33. California 



85,727 257,750 343,477 

25,500 610,069 635,569 

90,353 330,563 420,916 

139,837 1,146,869 1,286,706 

183,520 556,341 739,861 



151,888 



144,865 
706,095 



296,753 
706,095 



307 
150,675 
72,157 
66,909 
26,403 
100,000 
94,232 



253,018 

125,448 
202,614 
722,115 
439,958 
461,341 
114,921 
918,385 
478,061 



253,018 
125,448 
202,921 
872,790 
512,115 
523,250 
141,324 
1,018,385 
572,293 



70,866 198,698 269,564 



190,099 
67,296 



437,978 
206,543 



628,077 
273,839 



Forward 2,637,422 13,216,269 15,853,691 



The Nitrate Production 

Industry Name of The Oflcina. Stock, in one year. Total. 

■ Forward 2,637,422 13,216,269 15,853,691 

54 34. Camina 4,049 325,205 329,254 

35. Candelaria (Antofagasta) 109,106 377,755 486,861 

36. Carmela (Antofagasta) 125,089 413,879 538,968 

37. Carmen Bajo 163,609 697,469 861,078 

38. Castilla ( Aguas Blancas) 

39. Cecilia (Antofagasta) 234,089 720,885 954,974 

40. Celia (Antofagasta) 198,396 198,396 

41. Compania 23,816 154,337 178,153 

42. Condor 

43. Constaneia 71,253 367,447 438,700 

44. Cota (Aguas Blancas) 131,641 496,648 628,289 

45. Chile (Taltal) 148,580 1,329,766 1,478,346 

46. Cholita y Yungay Bajo 91,998 173,135 265,133 

47. Coya (Toco) 39,039 1,653,121 1,692,160 

48. Curico (Antofagasta) 207,738 740,314 948,052 

49. Delaware (ex-Carolina Taltal). 33,760 429,644 463,404 

50. Democracia 80,228 80,228 

51. Diana 31,496 113,893 145,389 

52. Domeyko (Antofagasta) 365,562 1,222,286 1,587,848 

53. Elena (ex-Rosario de Negreiros) 

54 Empresa (Toco) 270,185 1,027,902 1,298,087 

55. Enriqueta 

56. Esmeralda 23,167 75,479 98,646 

57. Esperanza (Taltal) 65,340 258,910 324,250 

58. Eugenia (Aguas Blancas) 190,659 931,429 1,122,088 

59. Felisa 205,182 205,182 

60. Filomena (Antofagasta) 114,499 664,204 778,703 

61. Flor de Chile (Taltal) 76,580 322,134 398,714 

62. Florencia (Antofagasta) 

63. Francisco Puelma (Antofagasta) 279,985 1,241,454 1,521,439 

64. Galicia (ex-Cataluna) 178,626 178,626 

65. Ghyzela (Taltal) 152,423 321,943 474,366 

66. Gloria 115,481 291,213 406,694 

67. Grutas (Toco) 130,856 647,103 777,959 

68. Hervatslm 97,354 137,025 234,379 

69. Higinio Astoreca (Antofagasta) 78,816 78,816 

70. Huascar (v. Reducto) 

71. Iberia (Toco) 129,233 370,078 499,311 

72. Jazpampa (v. Paccha) 

73. Josefina 86,100 232,086 318,186 

74. Jose Santos Ossa (Antofagasta) 201,407 1,277,442 1,478,849 

75. Keryma 28,474 180,080 208,554 



Forward 6,379,990 31,151,783 37,531,773 



Production The Nitrate 

Name of The Oflcina. Stock, in one year. Total, industry 

Forward 0,379,990 31,151,783 37,531,773 

7o. La Americana (Aguas Blancas) 203 203 55 

77. La Granja 178,640 498,946 677,586 

78. La Palnia 219,226 619,690 838,916 

79. La Patria 

SO. La Perla 

81. Lagunas 178,720 507,341 686,061 

82. Lastenia (Antofagasta) 225,754 807,748 1,033,502 

83. Lautaro (Taltal) 50,277 314,167 364,444 

84. Leonor (Antofagasta) 

85. Lilita (Taltal) 97,389 213,135 310,524 

86. Los Pirineos (v. Providencia) 

87. Luisis (Antofagasta) 184,101 675,166 859,267 

88. Mapocho 66,749 227,309 294,058 

89. Maria (Antofagasta) 301,884 1,185,003 1,486,887 

90 Maria Teresa (Aguas Blancas) 

91. Maroussia 73,746 180,312 254,058 

92. Mercedes 173,148 173,148 

93. Miraflores (Taltal) 

94. Moreno (Taltal) 236,025 673,811 909,836 

95. North Lagunas 155,445 428,097 583,542 

96. Oriente (Aguas Blancas) 94,334 268,547 362,881 

97. Paccha y Jazpampa 118,236 521,173 639,409 

98. Pampa Rica (Aguas Blancas) . . 1,000 65,000 66,000 

99. Pan de Azucar 100,573 434,583 535,156 

100. Paposo y Limenita 

101. Pena Chica 123,627 524,828 648,455 

102. Pepita (Aguas Blancas) 

103. Peregrina (Toco) 

104. Perseverancia (Antofagasta) . . 

105. Peruana 

106. Petrolina (Aguas Blancas)... 

107. Pissis (Antofagasta) 

108. Porvenir 

109. Primitiva 

110. Progreso 

111. Prosperidad (Toco) 

112. Providencia y Los Pirineos . . . 

113. Puntilla de Huara 

114. Puntunchara 

115. Ramirez 

116. Reeuerdo 

117. Reducto y Huascar 



273,199 


344,813 


618,012 




11,000 


11,000 


14,880 


194,388 


209,268 


317,464 


1,190,197 


1,507,661 


106,287 


281,321 


387,608 


68,645 


392,479 


461,124 


54,520 


212,870 


267,390 


338,550 


1,367,748 


1,706,298 


19,441 


222,268 


241,709 


123,224 


384,965 


508,189 


95,929 


427,087 


523,016 


178,344 


621,268 


799,612 


35,713 


25,793 


61,506 


35,402 


327,598 


363,000 



Forward 10,447,517 45,473,582 55,921,099 



The Nitrate Production 

Industry Name of The Oficina. Stock, in one year. Total. 

. Forward 10,447,517 45,473,582 55,921,099 

56 118. Restauracion 1,000 18,140 19,140 

119. Resurrection (ex-Iquique) 43,249 111,612 154,861 

120. Rica Aventura (Toco) 186,944 778,509 965,453 

121. Riviera (Antofagasta) 

122. Rosario de Huara 194,889 601,230 796,119 

123. Rosario ( Aguas Blancas) 364,791 364,791 

124. Sacramento 87,355 310,625 397,980 

125. Salinitas (Taltal) 126,441 498,377 624,818 

126. San Antonio 75,524 294,574 370,098 

127. San Donate 64,955 323,340 388,295 

128. San Enrique 

129. San Francisco 26,817 115,562 142,379 

130. San Gregoria ( Ags. Blancas) 

131. San Jorge 26,890 209,989 236,879 

132. San Jose 75,502 410,728 486,230 

133. San Lorenzo 132,341 261,638 393,979 

134. San Manuel / 13,588 6,118 19,706 

135. San Pablo 28,097 248,923 277,020 

136. San Patricio 59,081 218,985 278,066 

137. San Pedro 180,955 180,955 

138. San Remigio 77,169 193,753 270,922 

139. Santa Ana 

140. Santa Catalina 100,313 305,640 405,953 

141. Santa Catalina (Taltal) 

142. Santa Clara 

143. Santa Elena 43,685 82,740 126,425 

144. Santa Fe (Toco) 222,106 652,666 874,772 

145. Santa Isabel (Toco) 190,406 337,535 527,941 

146. Santa Lucia 81,605 483,760 565,365 

147. Santa Luisa (Taltal) 168,561 1,052,824 1,221,385 

148. Santa Rita y Carolina 88,820 390,605 479,425 

149. Santa Rosa de Huara 22,108 277,498 299,606 

150. Santiago 98,550 295,485 394,035 

151. Sara 30,688 238,737 269,425 

152. Savona (Antofagasta) 282,351 917,446 1,199,797 

153. Sebastopol 

154. Serena 

155. Slavonia 

156. South Lagunas 146,918 547,153 694,071 

157. Tarapaca 11,457 132,258 143,715 

158. Transito 103,124 451,083 554,207 

159. Tres Marias 66,946 312,689 379,635 



Forward 13,324,997 57,099,550 70,424,547 



Production The Nitrate 
Name of The Oflcina. Stock, in one year. Total, industry 
Forward 13,324,997 57,099,550 70,424,547 1 



160. Tricolor (Taltal) 56,1S0 161,694 217,874 

161. Trinidad 

162. Union 75,675 183,531 259,206 

163. Valparaiso 79,613 325,597 405,210 

164. Valparaiso ( Ags. Blancas) 

165. Victoria (ex-Sloga) 27,989 151,453 179,442 

166. Virginia 130,S57 29S,132 42S,9S9 

167. Vis 



13,695,311 58,219,957 71,915,268 



This table corresponds to the Nitrate year 1912-1913. 



The Nitrate (Extracts from The Mining Congress Journal of Jan. 7, 1916, with Senor 
Industry Cuevas' Rejoinder.) 



58 



TELLS OF CHILE'S NITRATE. 

The most important subject discussed during the day 
was that of the nitrate industry. A very able paper on 
this subject was read by Enrique Cuevas, counselor of 
the Chilean Embassy. He gave a brief history of the 
Chilean nitrate fields, and described at length their char- 
acter and composition, as well as the methods of extract- 
ing and treating the material. He emphasized the fact 
that those deposits are practically inexhaustible, and that 
they probably will continue for several centuries to pro- 
duce as much as they are doing today. 

DISCUSSION BY SENOR CUEVAS 
Of His Paper Read at the Pan-American Scientific 

Congress. 

The development of the industry for the fixation of 
nitrogen from the air is, on the one hand, slow, and on 
the other, requires great capital. So far, experience has 
shown that the financial results are much inferior to 
those expected. The production of nitrogen from the air 
falls far short of reaching the figures before estimated. 
Owing to these circumstances, the saltpeter from Chile 
(nitrate of soda), and the sulphate of ammonia are still 
the arbiters for the price of nitrogen. Chilean nitrate 
is taxed with a rather heavy export duty, which may be 
reduced or abolished by Chile, a circumstance which 
offers a real danger to the industry of atmospheric nitro- 
gen, because, the reduction of the cost of Chilean nitrate 
being possible, there is no safe basis from which to calcu- 
late the financial results of an industry so far uncertain. 
This danger has no doubt been considered, inasmuch 
as the promoters of this business, already established, 
feeling the necessity of obtaining more capital to save 
that invested, and in order to convince European capi- 
talists of the necessity of devoting more money to this 
industry, informed them that the Chilean nitrate was 
very nearly exhausted. 

In the paper which I presented to the Second Pan- 
American Scientific Congress, I stated that there is 



sufficient nitrate in Chile to supply the needs of the world J h ® titrate 

for at least three hundred years. This figure I have 

given as a sure one, for if I were to give one not so 59 

certain or so probable, I would surely have been obliged 
to name a much longer period of years. So if, from the 
technical point of view, the extraction of nitrogen from 
the air is a resolved problem, from the practical and 
financial point of view its resolution is unknown. 

The United States has no doubt enormous hydraulic 
powers that may be devoted to the extraction of nitrogen 
from the air, but there is only one objection to it, in my 
opinion a very strong objection, — namely, that this 
power applied to any other industry will give much 
greater profits. 

From the agricultural point of view, which is no doubt 
the most interesting one for this country, it is necessary 
to keep in mind the fact that the physical conditions of 
the products obtained by the different systems already 
known for the extraction of nitrogen from the air do 
not answer the agricultural requirements; in the first 
place, because the products so obtained are difficult to 
handle, and further, because they cannot conveniently be 
distributed over the soil. As soon as the receptacle is 
opened, the contents must be used; otherwise they are 
spoiled by the absorption of humidity from the air. The 
losses resulting from this condition, as well as the cost of 
the receptacle, make atmospheric nitrogen more expen- 
sive. Chilean nitrate does not offer any of these disad- 
vantages. The article may be used at any moment in the 
required quantity, and may be distributed in the soil in 
mathematically exact proportions, while that which 
remains unused does not spoil. The receptacle, more- 
over, is only a common sack. 

So far, the atmospheric nitrogen industry has not 
given to the farmers the cheap fertilizer promised. 

At the session of the Scientific Congress at which I 
read my paper on the " Nitrate Industry in Chile," it 
was said that the United States was paying Chile more 
than $17,000,000 every year for the nitrate it consumes. 
This, in my opinion, is no argument, for if every one of 
the different countries of the world should begin to take 
account of the millions of dollars that they pay yearly to 



The induSf tlie mdustries of tne United States, and should begin to 

n us ry invest the capital necessary to produce such articles at 

60 home, in order to leave in their own countries the money 
now paid to the United States, all the foundations upon 
which the commercial systems of the world rest would 
give way. 

It was also said that in case of an international conflict, 
in which the United States became involved, this country 
would find itself in a difficult position to obtain the 
nitrate necessary for the manufacture of explosives. 

The remedy for this situation is at hand. Why does 
not the United States buy great quantities of nitrate 
and store an amount sufficient to meet the necessities of a 
long campaign? The article does not suffer from stor- 
age, and the quantity required is not so very great. 
Germany who holds such a strong position in the present 
European conflict was thus enabled by her importing 
nitrate from Chile in enormous excess quantities up to 
the very day when war was declared to meet with ease 
her great crisis. 

So the United States, with its enormous coast line on 
the two oceans, possessing, moreover, the key of the 
Panama Canal, will certainly be able at any moment to 
import nitrate from Chile, even in the midst of a con- 
flict. Therefore I do not understand the urgency of 
investing capital in an industry of such uncertain 
financial results, although I do understand perfectly well 
the patriotic spirit that moves those, who are advocating 
this idea. 

Before concluding, lest some one think that the pre- 
vious arguments are partial, it may not be out of place to 
say to those who are not familiar with the nitrate indus- 
try in Chile, and the fiscal interest in the same, that:. 

The financial systems of the different countries adjust 
themselves to the requirements of those countries. Chile, 
for instance, sends to the United States its mineral 
products without receiving any profit from them. The 
exportation of iron and copper is not taxed in any form. 
. Millions of tons of these minerals are coming and will 
come from Chile to the United States, where they are 
manufactured, and constitute afterwards one of the 
greatest sources of income to this country. This is due 



to the fact that the export duty on nitrate is sufficient The Nitrate 
to procure for the Chilean Treasury the money necessary n us ^ 
for its expenditures. It is only logical and anyone will G1 
understand, that if that income should be reduced by the 
reduction of the export duty on nitrate, following limita- 
tion of the exportation of nitrate, an equilibrium would 
be established by fixing new export duties on other sub- 
stances. And certainly these duties would be imposed 
first of all on those minerals that are exported in the 
greatest quantities — iron and copper. So the previous 
arguments do not indicate partiality on my part. 



LIBRARY OF CONGRESS 



002 966 606 4 



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